Nothing good at this point. It is too little to late. They missed the right time to do it last summer. The real effect will take weeks to act and it will cause some lessening of emotion in the market but the pros run on logic.
I don't see this as an ideal scenario, but there's no doubt this rate cut will help. What's happening here is that they're trying to ward off a complete collapse in the housing market and massive defaults on mortgages by lowering rates to the point where people can renew or refinance their mortgages at low long-term fixed rates.
It's not perfect, but it may be the only thing that works here.
I'm actually sitting quite pretty here because: (a) I don't have a mortgage, and (b) I carry a commercial loan that is tied to the prime rate and will probably reach its contract MINIMUM soon (i.e., it can't go any lower -- and it's already ridiculously low for a commercial loan -- no matter how much lower rates go).
